As the Indian economy continues to grow and embrace technology, the country’s IT industry is becoming an increasingly important player on the global stage. From established giants to up-and-coming startups, the Indian IT sector offers a wealth of investment opportunities. In this article, we’ll explore some of the best IT stocks in India.
Best IT Stocks in India to Buy Now
The field of Information Technology, commonly known as IT, is often touted as the driving force for a country’s future success. The emergence of top IT companies within a country is therefore considered a significant indicator of its potential to excel in the coming years. Let us begin our list of best IT stocks.
1. Tata Consultancy Services Ltd.
In the world of business, Tata needs no introduction nor does it in the field of IT. Tata Consultancy Services Ltd. without a doubt is India’s biggest company in this field when it comes to market capitalization and it also happens to be the world’s largest IT service provider.
They offer a wide range of services and have a strong presence around the globe.
- The company has been using the capital effectively to generate profit and its RoCE has been improving for the past two years.
- The stock has a low PE and an average P/B.
- The TTM EPS is up by more than 6% on a Y-o-Y basis.
- The stock gained almost 1% value in the last trading session.
2. Infosys Ltd.
Infosys is the 2nd largest IT service provider in India and without a doubt one of the most popular stocks that can be found in every other person’s portfolio.
Again, the company provides a wide range of services to its clients across continents. The company may have faced various setbacks over the years bit emerges strongly from them which is why it is an ideal stock to invest in.
- The company has been using the capital effectively to generate profit and its RoCE has been improving for the past two years.
- The stock has a low PE and an average P/B.
- The TTM EPS is up by more than 11% on a Y-o-Y basis.
- The stock gained more than 1.5% value in the last trading session.
3. HCL Tech
HCL Tech is yet another global IT company and easily has one of the best IT stocks in India. In terms of revenue, they are among India’s top 5 companies in this field.
The company’s IPO was launched in 1999 and since then its stocks have gone from strength to strength. The company’s revenue along with its IT services has seen growth in recent times.
- The company’s net profit has grown while its profit margin has also increased on a Q-o-Q basis.
- The stock has an average PE.
- The TTM EPS is up by more than 31% on a Y-o-Y basis.
- The stock gained close to 0.7% value in the last trading session.
4. Persistent Systems Ltd.
Persistent Systems Ltd. may not be a household name like the other companies on this list, however, it surely has got a stock that you can’t look past when considering the top IT stocks that India has to offer.
This company has a good partnership with well-known global brands and that has contributed not just to its long-term visibility but also to commercial stability.
- The company stock is heading to its 52-week high price.
- The stock has an average PE.
- The TTM EPS is up by more than 38% on a Y-o-Y basis.
- The stock gained almost 0.7% value in the last trading session.
Also Read: 12 Best Large Cap Stocks in India
Top IT Sector Stocks
We have seen some of the best stocks in the field of IT above and we aren’t done just yet. Since India has so many renowned companies in this field, we will now look at some of the top IT sector stocks that would fit well in your portfolio.
1. Wipro Ltd.
Wipro Ltd. happens to be one of the most well-known Information technology companies in India. Be it their revenue or their operations either of them has seen growth recently which is what makes the stock a promising one.
Again, this company has a global presence, and they are working relentlessly to make the digital future perfect.
- The company’s net profit has grown while its profit margin has also increased on a Q-o-Q basis.
- The stock has a low PE and an average P/B.
- The 20-day average volume of the share is above 3.5 million.
- The stock gained more than 0.50% value in the last trading session.
2. Tech Mahindra Ltd.
A lot of you may associate Mahindra with automobiles but don’t be mistaken as the company also has a more than significant presence in the field of IT.
The company has a revenue of more than 6 billion USD, and its clientele includes almost 1,300 companies of which few also belong to the Fortune 500 list. They have a global presence and operate in 90 countries around the world.
- The company has been using the capital effectively to generate profit and its RoCE has been improving for the past two years.
- The stock has an average PE.
- The dividend yield of the company stock stands at 4.05.
- The stock gained more than 1% value in the last trading session.
3. MindTree Ltd.
MindTree in itself was a great company in the field of Information Technology but now that it has been acquired by a top company like L&T it has become even more reputable and thus features in this list of best IT stocks in India.
They have a revenue of over 3.5 billion USD and have more than 700 clients in 30 plus countries.
- The market cap of the company was above 56k crores.
- The book value per share stood above 330 rupees.
- The TTM EPS of the stock was high before the acquisition took place.
- The stock had a dividend yield of above 1.
4. MphasiS Ltd.
A company that claims to have engineering in its DNA has got to be one of the best IT companies around. The company offers various services to its clients and its labs offer cutting-edge innovations and industry-relevant solutions. If all that isn’t enough for you then what’s coming might be.
- The company’s net profit has grown while its profit margin has also increased on a Q-o-Q basis.
- The stock has a low PE and an average P/B.
- The TTM EPS is up by more than 19% on a Y-o-Y basis.
- The stock gained more than 1% value in the last trading session.
IT Sector Share List
While we have highlighted the top IT stocks in India, it’s worth noting that BSE has more listed IT stocks than NSE. However, there could be several unlisted companies in this sector. Let us now go over some of the best IT sector shares in which you can invest in.
1. Moschip Tech
Awarded by Ambition Box as the bests place to work in India Awards 2022 this company is one of the best IT sector stocks listed on the stock market. Semiconductors, systems, and the Internet of Things are some of their offerings.
Their products and services cater to semiconductors, consumer electronics, automotive, industrial automation, medical devices, aerospace, security, and a lot of other fields.
2. Digispice Tech
This company claims to be creating future-ready platforms and so it had to be on this list. This company was founded in 2000 and since then they have made sure to bring innovation to all fields that they cater to.
The company has experience in the field of telecom, IT, content, fintech, and mobile ecosystems for government services.
3. Birlasoft
This company belongs to the prestigious CK Birla Group of companies that have been around for more than 160 years. The company offers digital as well as enterprise technologies and services.
They serve people in banking, high-tech, manufacturing, capital markets, different insurance, utilities, and various other industries. The company believes in people being its biggest asset and anyone with that thought process has got to have one of the best stocks.
4. D-Link India
This company happens to be a global leader in designing and developing networking and connectivity products. They cater to consumers, small businesses, medium and large enterprises, and service providers.
It is a Taiwanese company that has gone global and today has a presence in more than 50 countries. The company was founded in 1986 and in all these years it has won multiple awards and established itself as one of the best companies around.
Software Stocks India
When we are talking about IT we are talking about tons of stuff, however, if we get into the nitty gritty then there are various fields as per which these companies can be further classified. Now that we have looked at the overall sector let’s dive into the software division and have a look at some of the top software stocks India.
1. E2E Networks
Cloud systems seem to have taken over the world and the companies that operate in this field are doing well which is what E2 Networks is into as well. The company has a clientele of over 10,000. The company stock is listed on NSE and the reasons you should consider investing in it are mentioned below.
- The company has high TTM EPS growth as it has increased by more than 930% on a Y-o-Y basis.
- The stock has an average PE.
- The RSI of the stock is indicating price strength.
- The stock gained more than 2.5% value in the last trading session.
2. GSS Infotech
GSS Infotech is in the business of consulting, providing digital solutions, applied intelligence, security, automation, cloud, and much more. Apart from being multi-faceted the company’s clientele also includes some very big names from top industries around the world.
A company this great is bound to be a good investment choice and reasons for the same will be reflected in the pointers mentioned below.
- The company has high TTM EPS growth as it has increased by more than 660% on a Y-o-Y basis.
- The stock has an average PE.
- In the past 5 years, this company has given more than 300% in returns.
- The stock gained more than 5% value in the last trading session.
3. Nintec Systems Limited
Established in 1997 this company is an IT service provider that can easily be counted as one of the best IT stocks in India. The company has a reach across 5 continents or 30 countries.
Their clientele includes 30 companies from Fortune 500 companies, 100 SMEs, and 18 verticals. If that is not enough check out the performance of their stock below to know why this is one of the top stocks India has to offer.
- The company’s annual EPS growth has been strong.
- The stock has an opportunity for a positive breakout against the third resistance.
- The stock seems to be closing in on its 52-week high price.
- The stock gained almost 5% value in the last trading session.
4. Xelpmoc Design
The name may not give away, but this company is in the business of providing tech solutions. However, that is not where it stops as they also provide design services, data science, and other such services to their clients. To know more about the reason this stock has been mentioned on this list check out the pointers below.
- The company has no debt that it has to return.
- The stock has a low P/B.
- In the previous three years, the stocks have given returns of over 130%.
- The stock gained almost 5% value in the last trading session.
Future Technology Stocks India
Companies that prioritize introducing future technology are poised to shape the future, making them promising investment options. Here are some future technology stocks in India to consider for your portfolio.
1. Zensar Technology
Experience services, advanced engineering services, and foundation services are just some of the services that this company provides to its clients.
The company operates in the banking and financial services, hi-tech and manufacturing, insurance and retail, and consumer space. The reasons to invest in the stock of this multi-purpose company can be found below.
- The company has been using the capital effectively to generate profit and its RoCE has been improving for the past two years.
- The stock has an average PE and an average P/B.
- The dividend yield of the stock is 1.76.
- The stock seems to be closing in on its 52-week high price.
2. Happiest Minds
This company has recently increased its monetization by 20% and won multiple awards at the ICSI National Awards 2022. They offer blockchain technology, data science, cloud computing, the Internet of Things, and other such technology to their clients. Microsoft and Amazon are just a couple of alliances of this company.
- The company has low debt.
- The stock has a low PE and low P/B.
- The TTM EPS is up by more than 41% on a Y-o-Y basis.
- The stock gained more than 0.2% value in the last trading session.
3. Tata Elxsi
When talking about future-oriented companies you can’t leave Tata out of the conversation as it is not just one of the top IT sector stocks but also one of a kind when the future aspect is considered.
AI happens to be one of their product offerings apart from that their services include enterprise learning, product engineering, and other such stuff. The company’s workforce comes from more than 26 countries. The company has been around for a quarter of the century so far.
- The company’s TTM EPS is high and has grown by more than 40% on a Y-o-Y basis.
- The stock has an average PE and an average P/B.
- The target price of the stock has been upgraded in the past three months.
- The stock has gained more than 800% in value in the last three years.
4. Bosch
This article is about the best IT stocks in India and so a company like Bosch can’t be left out of it. The company is in the AI industry and has been around for a century now.
Using German engineering and Indian Entrepreneurship the company has made itself a big name in the industry and they have already planned for the next 100 years which should tell you why the stock is on the list of top future technology stocks India has to offer.
- The company stock has a strong annual EPS growth which is up by more than 2% on a Y-o-Y basis.
- The stock has an average PE and an average P/B.
- The stock is just over 4% away from its 52-week high price and can go ahead and create a new one.
- The stock gained almost 1% value in the last trading session.
India’s IT sector offers a diverse range of investment opportunities with the potential for significant growth. As the industry continues to evolve, investors can consider exploring various IT stocks to capitalize on the sector’s promising outlook.
